AMERICAS
Committee on Foreign Investment in the United States completed its review of Cypress' previously announced merger transaction with Infineon Technologies and determined that there are no unresolved national security concerns with respect to the proposed merger.
The merger remains subject to receipt of regulatory approval from China's State Administration for Market Regulation and other customary closing conditions under the merger agreement.
Cypress is advised by Morgan Stanley, Simpson Thacher & Bartlett. Morgan Stanley is advised by Gibson Dunn & Crutcher. Infineon is advised by Bank of America Merrill Lynch, Credit Suisse, JP Morgan, Freshfields Bruckhaus Deringer and Kirkland & Ellis. Debt is provided by Bank of America Merrill Lynch, Credit Suisse and JP Morgan. Bank of America Merrill Lynch, Credit Suisse and JP Morgan are advised by Linklaters and Cleary Gottlieb Steen & Hamilton.
Banks that agreed to provide c. $7bn of loans for Eldorado Resorts' acquisition of Caesars Entertainment struggle to offload the debt to investors as fears over the coronavirus outbreak wreak havoc across the travel and leisure industry, Bloomberg reported.
JP Morgan, Credit Suisse and Macquarie Group agreed to the financing last June. Now, with the takeover expected to close as soon as next month, the underwriters are confronting a tight window to sell bond and loan buyers on the idea of lending to a highly leveraged gaming company just as Americans cancel their vacations, casinos empty out, and the conference scene grinds to a halt.
Caesars is advised by Deutsche Bank, PJT Partners, Skadden Arps Slate Meagher & Flom and Teneo. Deutsche Bank and PJT Partners are advised by Ropes & Gray. Eldorado is advised by Credit Suisse, JP Morgan, Macquarie Group, Latham & Watkins, Milbank and JCIR. Credit Suisse, JP Morgan and Macquarie Group are advised by Cravath Swaine & Moore. Debt is provided by Credit Suisse, JP Morgan and Macquarie Group.
Based on current market conditions, WESCO expects to fund the entirety of the cash portion of the merger consideration with debt and cash-on-hand at WESCO and Anixter. WESCO previously anticipated funding a portion of the cash consideration through the issuance of WESCO common stock or other equity or equity-linked securities, in addition to issuing debt.
Anixter is advised by Centerview Partners, Wells Fargo Securities and Sidley Austin. WESCO is advised by Barclays and Wachtell Lipton Rosen & Katz. Debt financing is provided by Barclays.
The Blackstone Group agreed to acquire a majority stake in HealthEdge, a provider of healthcare IT solutions. Financial terms were not disclosed.
"We are thrilled to work with Blackstone as we enter the next chapter of our company's growth. Blackstone's expertise in healthcare and extensive operational resources made them our partner of choice to help fuel our continued expansion and better serve our customers in the years ahead. We are deeply grateful to our employees, for all of their hard work and dedication; our customers for their loyalty and ongoing partnership; and our Chairman, Al Waxman, and his venture fund Psilos Group, for supporting our company from the very start. These stakeholders put us in the position for this transformative growth opportunity," Steve Krupa, HealthEdge CEO.
HealthEdge is advised by Morgan Stanley and Goodwin Procter. Blackstone is advised by TripleTree and Debevoise & Plimpton.
United Community Banks, a bank holding company, agreed to acquire Three Shores, a bank holding company, including its subsidiary Seaside National Bank & Trust, for c. $180m. The transaction is expected to be completed in the third quarter of 2020 and is subject to customary conditions, including regulatory approval as well as the approval of Three Shores' shareholders.
"Seaside adds the ability to supplement our traditional retail branch and commercial model with a "branch lite" C&I focus. Our larger balance sheet and low-cost funding brings capital needed to continue to grow Seaside's business and relationships. Additionally, the financial returns of the transaction are not reliant on high cost savings or on revenue synergies. However, we do believe these opportunities will exist as we will be able to offer expanded products and services through our combined franchise. The business will continue to be run by Seaside's experienced and proven management team, and our cultural compatibility and shared relationship-based approach makes this a great fit," Lynn Harton, UCBI Chairman and Chief Executive Officer.
Three Shores is advised by Piper Sandler and Smith Mackinnon. United Community Banks is advised by Morgan Stanley and Nelson Mullins Riley & Scarborough.
First Midwest Bancorp completed the acquisition of Park Bank for $195m.
First Midwest Bancorp, the main banking subsidiary of First Midwest Bancorp, completed the acquisition of Bankmanagers and its wholly-owned subsidiary, Park Bank, for $195m. The merger agreement provided for a fixed exchange ratio of 29.9675 shares of First Midwest common stock, plus $623.02 in cash for each share of Bankmanagers.
"First Midwest's mission of helping its customers achieve financial success is aligned with our client-first approach. Joining First Midwest will enable us to both continue and enhance our commitment to relationship-banking as well as offer our customers a broader array of products and services. First Midwest is very familiar with the Milwaukee market, and we look forward to becoming part of the First Midwest family," David Werner, Park Bank President and CEO.
Park Bank was advised by Stephens and Barack Ferrazzano Kirschbaum & Nagelberg. First Midwest was advised by Sandler O'Neill + Partners and Chapman and Cutler.
Community Bank System and Steuben Trust win shareholder approval for $107m merger.
Community Bank System and Steuben Trust announced that they received shareholder approval for their $107m merger. Steuben reported that more than 98% of the votes cast approved the merger and that more than 84% of the issued and outstanding shares were represented. The acquisition is expected to close during the second quarter of 2020, pending regulatory approval and other customary closing conditions.
"We are excited to hear of the strong support by the Steuben shareholders for the merger. Community Bank looks forward to the opportunity to welcome Steuben Trust Company's customers and employees to our family as we work together to integrate two high-quality banks with long histories of service to their customers and communities. We are dedicated to Steuben Trust Company's customers and both teams are working to make the transition to Community Bank as seamless as possible. We hope that our new customers will enjoy the larger branch network and variety of financial services Community Bank and its subsidiaries have to offer," Mark E. Tryniski, Community Bank System President and CEO.
Steuben Trust is advised by PNC Financial Services and Pillar Aught. Community Bank System is advised by D.A. Davidson & Co and Cadwalader Wickersham & Taft.
"Twitter serves the public conversation, and our purpose has never been more important. Silver Lake's investment in Twitter is a strong vote of confidence in our work and our path forward. They are one of the most respected voices in technology and finance and we are fortunate to have them as our new partner and as a member of our Board. We welcome the support of Egon and Jesse, and look forward to their positive contributions as we continue to build a service that delivers for customers, and drives value for stakeholders," Jack Dorsey, Twitter co-founder and CEO.
Twitter is advised by Goldman Sachs, Allen & Company and Wilson Sonsini Goodrich & Rosati.
Horizon North, a provider of a full range of industrial, commercial, and residential products and services, agreed to merge with Dexterra, a provider of quality solutions for the operation and maintenance of built assets and infrastructure including facilities management and operations. Financial terms were not disclosed.
The transaction is expected to close in the second quarter of 2020, subject to the receipt of all necessary approvals.
"We will be stronger together, building a sustainable and profitable business to create more opportunities for our people and enhance our delivery to the customers we serve and the clients we work for," John MacCuish, Dexterra Chief Executive Officer.
Horizon North is advised by Scotiabank and Blake Cassels & Graydon. Fairfax Financial is advised by Torys.
"Dr DiBuono and Dr Smith have built a high-quality organization that fits perfectly with ERG. RBA's thoughtful growth plan aligns with ERG's vision for the future, allowing us to further service our deep client base and continue to assist in the development of important new therapies," Michael Farah, Linden Capital Partner.
Richmond Behavioral Associates was advised by Nixon Peabody. Evolution Research Group was advised by Honigman Miller Schwartz & Cohn and Kirkland & Ellis.
New Heritage Capital, a Boston-based private equity firm, completed its investment in DeWinter Group, a provider of temporary and permanent staffing solutions with deep expertise in finance, accounting and information technology. Financial terms were not disclosed.
"We believe that the combination of DeWinter's reputation, deep and long-standing client and candidate relationships, and committed management team has driven the company's success to date. We look forward to working with Derek, Shane and the entire DeWinter team to continue to drive that success going forward," Judson Samuels, Heritage Partner.
DeWinter was advised by Citizens Capital Markets.
BlueGrace Logistics, a third-party logistics services company, completed the acquisition of Anthym Logistic, a freight broker with its primary offices in Tampa and Chicago. Financial terms were not disclosed.
"I am extremely pleased to announce this strategic transaction. The leaders of Anthym Logistics are some of the most highly respected members of the logistics community. With sales expertise across all modes of transportation, BlueGrace is gaining an incredible bevy of supply chain talent that would otherwise require many years to develop internally. We are making a giant leap forward today that will ensure we maintain and even accelerate the momentum that we have developed over the last decade," Bobby Harris, BlueGrace Logistics Founder and CEO.
BlueGrace Logistics was advised by Michelle Damico Communications.
CVS Pharmacy, a subsidiary of retail and health care company CVS Health, agreed to acquire Schnucks' pharmacies and retail stores. Financial terms were not disclosed.
The transaction is expected to be completed by the end of the second quarter and is subject to customary closing conditions.
"We have great admiration for Schnucks and believe CVS Pharmacy can bring additional clinical services to its customers. One of CVS Health's strategic imperatives is to Be Local. By opening CVS Pharmacy locations within Schnucks stores, we're increasing access to high-quality care and meeting customers where they are. Schnucks is a best-in-class grocer, and we're honored to partner with them to bring our best-in-class pharmacy capabilities to their customers," Jon Roberts, CVS Health Executive Vice President and COO.
"We are thrilled to welcome Team Legal to our organization. The company has experienced dynamic growth over the past five years, fueled by its dedicated employees, industry-first technology, and unflagging dedication to providing outstanding services," Gary Buckland, Lexitas CEO.
Lifesize, a provider of video collaboration and meeting productivity solutions, agreed to merge with Marlin-backed Serenova, a contact center-as-a-service provider. Financial terms were not disclosed.
"This merger joins two companies with vast market expertise and cutting-edge, cloud-based solutions. When combined into an integrated platform, we will be uniquely positioned to help organizations deliver communication experiences that far surpass the status quo, from the contact center to the meeting room and beyond," Craig Malloy, Lifesize Founder and CEO.
RMA Worldwide Chauffeured Transportation, a transportation service in North Bethesda, Maryland, completed the acquisition of Addison Lee US, the US unit of United Kingdom-based Addison Lee Group, United Kingdom-based Addison Lee Group. Financial terms were not disclosed.
"We are extremely excited to announce the acquisition of Addison Lee US. Providing our clients with exceptional customer service has always been our top priority. We look forward to bringing RMA's commitment to excellence to all of Addison Lee's clients and affiliates," Robert M. Alexander, RMA Worldwide Chauffeured Transportation CEO.
Henkel, KKR bid for $8bn Coty unit. (FS)
Henkel, the German shampoo maker, and buyout firm KKR are among a small group of suitors proceeding to the second round of bidding for Coty’s professional hair and nail products business, Bloomberg reported.
Advent International and a separate consortium of Cinven and the Abu Dhabi Investment Authority were not chosen to advance to the next round after they submitted initial offers last week. Private equity firms Bain Capital and Clayton Dubilier & Rice dropped out of the race.
Ex-Citigroup president to join HSBC board. (People)
James Forese, the former president of Citigroup who departed the US bank in April last year, is to join the board of HSBC. The 57-year-old will take up a non-executive role in May.
A trader by background, Forese joined Salomon Brothers, which later became part of Citi, in 1985. He went on told hold senior roles, including head of its investment bank, before retiring in 2019. He was once considered a potential successor to Citi chief executive Mike Corbat.
EMEA
The Carlyle Group completed the acquisition of Harwood Wealth Management Group, a financial planning and discretionary wealth management firm, for $118m.
"Looking ahead, the Board believes that Carlyle and Hurst Point will be excellent partners to Harwood, providing the capital backing, strategic support and additional resources and investment needed for the business to continue to grow. We therefore believe the acquisition is in the best interests of all our stakeholders. We are committed to maintaining the very highest quality of service to our clients and our partners going forward," Peter Mann, Harwood Non-Executive Chairman.
Harwood was advised by N+1 Singer, Evercore, Blake Morgan and Alma PR. Carlyle was advised by RBC Capital Markets and Linklaters.
"One year ago, we first announced the strategic review of our contract logistics business to improve profitability and focus on our core, scalable solutions. We have now reached a major milestone in this effort, having secured an agreement to sell significant non-core assets in the UK. With XPO Logistics, we are pleased to have found a good new home for our customers and employees," Detlef Trefzger, Kuehne + Nagel International CEO.
XPO Logistics is advised by Macfarlanes.
Jingye Group, a manufacturer of steel products, completed the acquisition of British Steel, a manufacturer of steel products. Financial terms were not disclosed.
Jingye pledged to invest £1.2bn ($1.6bn) to place the business on a more competitive and sustainable footing. Jingye plans to return the company to industry comparable margins within five years.
"This is a momentous day for our business, and I'd like to thank everyone for their dedication during a challenging year. I'm confident we'll seize the incredible opportunity Jingye have given us to build on 150 years of heritage, and further cement British Steel's reputation as a manufacturer of world-class steel," Ron Deelen, British Steel CEO.
Investment firm DIK Deutsche Industriekapital agreed to acquire the German glass processing operations of Saint-Gobain, a provider of construction, high-performance, and other materials. Financial terms were not disclosed.
Saint-Gobain Glassolutions will remain present in Germany through its large glass transformation sites for industrial clients in particular, as well as its sites with specific areas of expertise such as in solar glass or curved glass. This disposal is part of Saint-Gobain's continued portfolio optimization strategy in the context of its new organization to enhance the Group's growth and profitability profile.
Angelini Pharma completed the acquisition of ThermaCare® from GSK.
Angelini Pharma, an integrated pharmaceutical company, completed the acquisition of ThermaCare® global business rights, excluding North America, from GSK, a British multinational pharmaceutical company. The deal also includes the dedicated US manufacturing site for ThermaCare in Albany, Georgia.
"Along to prescription drugs, Angelini Pharma is recognized for having built a successful Consumer Healthcare business by consistently delivering high-quality solutions to our customers. I am convinced that the ThermaCare® deal will represent a significant incremental growth engine for our accelerated international expansion," Pierluigi Antonelli, Angelini Pharma CEO.
Gruppo San Donato withdraws from bidding for NMC.
Gruppo San Donato, Italy’s private healthcare group, has withdrawn from bidding for NMC Health, the Middle East-focused healthcare company.
The Italian group has been the only bidder for NMC Health after private equity group KKR ruled out its involvement last month.
GKSD was advised by GK Investment, Rothschild & Co and Goldman Sachs.
HgCapital targets more than £6bn for three new funds. (FS)
HgCapital is pitching three new funds focused on the software and services sector in Northern Europe and expects to wrap them up by the end of March, PE News reported.
The firm is targeting a total of more than £6bn ($7.8bn) across the three funds, including its core mid-market strategy, an upper mid-market fund and a lower mid-market fund.
LSP closed its $600m European life sciences fund. (FS)
LSP closed its LSP 6 fund at the $600m hard cap. It is the largest fund ever raised in Europe focused on life sciences ventures.
‘’Our track record, our long-standing in the industry, as well as our stable and experienced team of 30 professionals have helped us raise this significant amount. The number of high-quality life sciences innovations in Europe is similar to the United States. With our new fund we can significantly contribute to the growth of our industry and ensure that European innovations get to patients faster,’’ René Kuijten, LSP Managing Partner.
Blackstone in talks to privatize SOHO China in a $4bn deal. (FS)
Blackstone Group is in talks to take SOHO China private in a $4bn deal, in one of its biggest bets yet on the Chinese market and which sent the target's shares to a 21-month high, Reuters reported.
Blackstone Group began discussions in early February. The private equity firm offered $0.77 per share to take the company private.
The details of privatizing SOHO China are expected to be finalized in the coming weeks.
Bank of East Asia seeks $1bn insurance asset sale. (FS)
Bank of East Asia, the Hong Kong lender that has been besieged by activist investor Paul Singer’s Elliott Management, is considering options including a sale of insurance assets as part of its strategic review, Bloomberg reported.
BEA could seek more than $1bn from a sale of assets including its life and general insurance as well as its pension fund business in Hong Kong. A deal for the life insurance assets could include a so-called bancassurance partnership, in which an insurer typically pays an upfront amount for exclusive rights to sell its products at bank branches.
CDPQ increased its stake in Azure Power. (FS)
Azure Power, an independent solar power developer in India, announced that Caisse de dépôt et placement du Québec, a global institutional investor, acquired an additional 718k shares in the company. After acquiring the additional shares, CDPQ is the direct owner of 24m shares of Azure, which represent 50.9% of the outstanding shares.
"This new investment by CDPQ is a recognition of Azure Power's leading solar development platform in India. By having a majority shareholder with a long-term approach and a AAA credit rating, we will have better access to external capital further improving our future growth," Ranjit Gupta, Azure Power CEO.
A buyout group in talks to take China Biologic private.
A Chinese buyout group is in advanced talks to take US-listed China Biologic Products Holdings private, Bloomberg reported.
Negotiations have entered their final stage, and an announcement could come as soon as in the next few weeks. Shares of China Biologic gained 1.8%, giving the company a market value of nearly $4.5bn.
China’s Sino-Ocean Capital considers $1.5bn fund to invest in prime offices in Beijing. (FS)
Sino-Ocean Capital, the investment unit of mainland developer Sino-Ocean Group, is reportedly targeting to collect $1.5bn for its latest real estate fund for investments in prime offices in Beijing. The investment vehicle is expected to become the largest real estate fund so far raised by Sino-Ocean Capital.
The company had expected to reach the final close of the fund by the end of 2019, but it is still in discussions with Dutch pension fund manager APG Asset Management, Hong Kong’s central banking authority Hong Kong Monetary Authority, and Singapore’s sovereign wealth fund GIC on potential commitments. Sino-Ocean Capital is looking to raise the entire $1.5bn for the fund from the three potential investors.
CBRE Global Investors raised $900m for fifth Asia real estate fund. (FS)
CBRE Global Investors marked the final close of its latest fund – CBRE Asia Value Partners V – at its hard cap of $900m, lower than the $1bn that its predecessor raised in 2017.
Asia-focused private equity fund received commitments from sovereign wealth funds, pension funds, and other top-tier institutional investors across North America, Europe, and the Middle East.
“Interest in APAC real estate investments remains high, which is reflected in the strong demand from investors worldwide for this fifth iteration of our regional value-add real estate strategy,” Bernie McNamara, CBRE Global Head of investor services and solutions.
STRIVE gathers more than $100m for third fund. (FS)
STRIVE, formerly known as GREE Ventures, closed its third cross-border venture fund above $100m, lower than its original target of $130m.
“We had set December 31, 2019 in our heads as the deadline to get whatever commitments we could get and just close the fund, and that’s what we did. Wherever it ended, we were okay with it as long as it was at least $100m. We would rather spend more time with the (portfolio) companies than trying to fundraise,” Nikhil Kapur, STRIVE Partner.
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